I will be releasing a cryptocurrency exchange soon which has its own utility token. I want to distribute this token via a simple free UE4 game. I will not be making any money from the game itself, it is merely a free giveaway. But I will make money from fees if this token is traded on my exchange. I am also hoping to make the game available to other token creators who can use it to distribute their coins, again this will be free.
I am just wondering if I will have to pay royalties forever for this, when the game was just used and discontinued for my purposes within a week before I even launch my exchange.
I hadn’t planned to do that, although in theory it would be possible to do it inter-exchange from initial giveaways, as they will be tied to their exchange account. The coin will be an ERC token so people can withdraw it to their personal wallets. I will not know the origin of any of the coins should they be deposited from the blockchain.
Also if someone has 30 coins and 15 are from a giveaway, while the rest are traded from another coin, and the user then trades some of them, it becomes a bit messy to decide if they trade “giveaway” coins or not. Suppose could do it as a ratio of both.
I guess what you are trying to get at, is I would owe a revenue of any fees made from the exchange of coins which were given away in the game? I appreciate this is probably unknown territory
Thinking about it now. Perhaps an easier way of doing it, is to just take the 5% revenue off the percentage of coins given away through the game. For instance if 40% of the total coins are distributed through the game, then you guys get 2% of revenue generated from the exchange. Does this sound reasonable? I am thinking of allowing other tokens to use it as well for free, so not sure how it would work… as I don’t have control of their coins, and now it starts to get complicated. What about if you guys get 3% (just a random figure) of the total number of coins that would be distributed?